Company Law

Understanding Chinese Company Law, 2nd Edition

By Gu MinKang
Hong Kong University Press July 2010

Specifications

ISBN-13
9789888028627
Publisher
Hong Kong University Press
Publication
July 2010
Format
Paperback , 394 pages
Jurisdiction
China ? Countri(es) for reference only

Details

In China, the thirty-year economic reform reflects the process of moving from planned economy towards market economy. This could be seen from the changes in the 2005 Company Law, which recognizes the owners’ property rights and gives more freedoms to them to decide various matters. In this new edition, besides offering a systemic discussion of the nature of companies, the constitution of companies, the establishment of various companies, role and function of various parties in corporate governance, and corporate financing, Gu Minkang highlights the major changes in the 2005 Company Law, and addresses many new issues such as shareholders’ derivative action, American limited liability company, and asset restructuring of listed companies. Another important feature is a comparison between the 1993 Company Law and the 2005 Company Law that will facilitate reading and understanding. 

This comprehensive and up-to-date presentation of Chinese company law will be of value to all who are involved in business with and in China and their legal advisors, and to students of Chinese company law.

Table of Contents

Preface to the Second Edition 
Preface to the First Edition 

Chapter 1: General Introduction 
I.  Short history of Chinese company law 
II.  Overview of existing problems 
III.  Research methodology of this book 
IV.  The evolution of Chinese company law 
V.  A brief introduction to Hong Kong company law 
VI.  A brief introduction to Taiwanese company law 
VII.  A brief introduction to American company law 

Chapter 2: Nature of Companies 
I.  Definition of companies 
II.  Types of companies 
III.  Nature of companies 
IV.  Incorporation versus incorporated 
V.  Branch companies and subsidiary companies 
VI.  Foreign companies 

Chapter 3: Constitution of Companies 
I.  Names of a company's constitution 
II.  The nature of the articles of association 
III.  Articles of association should be filed or approved in China 
IV.  Powers of shareholders under the articles of association 
V.  Contents of the articles of association 

Chapter 4: Establishment of Limited Liability Companies 
I.  Introduction 
II.  Establishment 
III.  One person company 
IV.  Establishment of a special LLC: A wholly state-owned company 
V.  Foreign investment entities which are LLCs 

Chapter 5: Establishment of Joint Stock Companies 
I.  Introduction 
II.  Issues concerning promoters 
III.  Establishment of the JSCs 
IV.  Foreign invested JSCs 
V.  Liabilities for an invalid incorporation 

Chapter 6: Shareholders' Meeting 
I.  Issues of corporate governance 
II.  Shareholders' meeting 

Chapter 7: Directors and Board of Directors 
I.  Creation of directors 
II.  Duties of directors 
III.  Rights of directors 
IV.  The BOD 
V.  Managers 

Chapter 8: Board of Supervisors 
I.  Legal status and powers 
II.  Establishment of the BOS 
III.  Remaining problem: Supervisors versus independent directors 

Chapter 9: Other Organs 
I.  Workers' roles in corporate governance 
II.  Role of the Communist Party of China 
III.  Company secretaries 

Chapter 10: Corporate Finance 
I.  Definition of capital 
II.  Legal meanings of corporate capital 
III.  Basic principles of corporate capital 
IV.  Formation of corporate capital 
V.  Issuance and classification of shares 
VI.  Company bonds 
VII.  Distribution of profits 
VIII.  Remaining issues 

Chapter 11: Merger and Acquisition 
I.  Introduction 
II.  The possibility of M&A in China 
III.  Obstacles to foreign involved M&As 
IV.  The legal issues on foreign involved M&As 
V.  Forms of mergers 
VI.  Acquisitions 
VII.  Limitations on mergers 
VIII.  Procedures for mergers 
IX.  Takeover and corporate control transactions 
XI.  Division of companies 

Chapter 12: Bankruptcy Proceedings 
I.  Introduction 
II.  Chinese bankruptcy law 
III.  Liquidation of FIEs 
IV.  Remaining issues 
V.  Conclusion 

Chapter 13: Future Chinese Company Law 
I.  Chinese company law should be improved quickly 
II.  China should adopt a unified company law 

Index

About the Author

Gu Minkang was born and educated in Shanghai, China. He earned his bachelor of law (1980–1984) and master of law degrees (1984–1987) from the East China University for Politics and Law. He was then a lecturer in law for five years at that university. He is now an associate professor, teaching Chinese and common law, at the City University of Hong Kong. He has also spent a year as visiting fellow at the Faculty of Law of the Ruhr University (Bochum, Germany), earned his doctor of jurisprudence degree at Willamette University College of Law (Oregon, USA) and a master of European business law degree at Aix-Marseille University (Aix-en-Provence), France.

Reviews

"With the commencement of economic reform in China and the subsequent dramatic growth in its economy and private enterprise, company law has become of great importance. In this pioneering and comprehensive study, the author provides a clear picture of the major topics in Chinese company law." — Abstracts of Public Administration, Development, and Environment

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